Evaluating Best Practices for Improving Beneficial Ownership Registration (AL0076)

Brief Description of the Commitment

After the enter into force of the Law No.112/2020 “On the Beneficial Owners Register”, and the activation of the beneficial owners register in February 2021, it has been noted that during its implementation several difficulties and challenges have been faced by the reporting entities in the implementation of their legal obligation to initially register their beneficial owners and to change the already registered data as well. It has been concluded that the evaluation of the best practices in cooperation with the representatives of the reporting entities and the interest groups, is an engagement that will bring an improvement of the practices followed by our country during the process of the beneficial owners’ registration and the update of this data in the Beneficial Owners Register.

Problem Definition

1. What problem does the commitment aim to address? The problems encountered by the reporting entities during the identification of their beneficial owners related to the notion of the beneficial owner, the procedure followed and the accompanying documentation required.

2. What are the causes of the problem? The obligation for the registration of the beneficial owners’ data is a new procedure and challenge for all the reporting entities that operate in Albania, since it still a new concept in life-cycle of a business or NGO. These practices serve as guideline for the consolidation of our practices.

Commitment Description

1. What has been done so far to solve the problem? The National Business Center, as the responsible institution for the administration of the beneficial owners’ register, has participated in meetings of the groups of interest organized by the members of EBRA for the beneficial owners. In those meetings it was discussed about the practices followed by the EBRA member countries for the implementation of the beneficial owners’ registration and of the AML’s 4th Directive. Also, it was discussed the problematics faced during the implementation.

2. What solution are you proposing? Evaluation and analysis of the best practices implemented by other countries of the European Union which also have a long experience in this field. Discussion in the form of consultative meetings with representatives of reporting entities and interest groups on these practices.

3. What results do we want to achieve by implementing this commitment? Identification of the best practices in order to integrate and implement them in the Albanian legislation on the registration and update of beneficial owners’ data.

Milestones | Expected Outputs | Expected Completion Date

1. Organization of a meeting with the participation of representatives of the reporting entities and interest groups,aiming to gain experience from the best practices of EU countries regarding the process of beneficial owners’ data registration. | - Drafting of a report or guidance manual that highlight the best practices where the entities may refer during their application for beneficial owners’ data registration. | S I 2024

2. Organization of a training organized with the participation of representativeso f the reporting entities and interest groups, in order to recognize international practices in the registration of beneficial owners’ data. | - Drafting of a report or guidance manual that highlight the best practices where the entities may refer during their application for beneficial owners’ data registration. | S II 2024

Action Plan Review

Commitment 3. Evaluate best practices of EU countries on beneficial owners’ data registration